The British Pound (GBP) appears to have entered a consolidation and is likely to trade between 1.2705 and 1.2770. Long term, there has been a sharp increase in momentum; GBP could rise to 1.2850, say UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
GBP could rise to 1.2850
24 HOUR VIEW: “Last Friday, we expected GBP to ‘continue rising, potentially breaking above 1.2805.’ However, we felt that ‘main resistance at 1.2850 was probably out of reach for now.’ Our view was not wrong as GBP broke above 1.2805, hitting a high of 1.2811. The advance was short-lived as it quickly fell from the high to close at 1.2741 (-0.15%). “It appears to have entered a consolidation and is likely to trade between 1.2705 and 1.2770.”
1-3 WEEK VIEW: “We revised our GBP outlook to positive last Friday (Dec 6, spot at 1.2760), stating that ‘there has been a strong increase in momentum,’ and that ‘it could rise to 1.2850.’ GBP subsequently rose to a 3-week high of 1.2811 before quickly retreating. Although the pullback has dampened the bullish momentum somewhat, we still maintain the view that GBP could rise to 1.2850. of 1.2685 (no change in ‘strong support’ since last Friday), would indicate that the current bullish momentum has faded.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
